The British builder could reward buyers as shares upturn after a sharp fall since the last test of the GBp 1354 resistance.

In early May, the house building and construction group stated that its order book continues to increase and thus justifying an anticipated rise in net debt (from £14 million in 2013 to £69 million in 2014) to be used for acquiring lands. Sales are estimated at £1.6 billion by the end of the year, an increase of 12% over the last year. The positive evolution in operating margins could continue its course according to forecasts; therefore, EBITDA could improve by 16%. Its fair valuation, a P/E ratio of 13.6 times estimated benefits, may lure investors willing to open buyer positions on the stock.

Technically, the equity showed a downgraded configuration in the past. The approach of the support line in past sessions gave the stock the necessary impulse to stop the progress of the bearish trend and could ultimately open the way to a rally. Moreover, the bottom trend line should reinforce the anticipated rebound. Even if moving averages in all time scales still not drawing an uptrend, a positive reaction in the GBp 1138 area should shift this trend and allow a technical rebound towards GBp 1257. However, the bull run will be confirmed once the GBp 1200 level broke.

Therefore, prices closeness to this convergence level help for an improvement that could result gainful for investors buying the stock at current prices. Their main goal should be the GBp 1257 once the GBp 1200 exceeded and they could set a stop-loss order at 1100, for restricting losses.